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<ul><li>1.Chapter One Marketing:Creating and Capturing Customer Value</li></ul> <p>2. Creating and Capturing Customer Value </p> <ul><li>What Is Marketing? </li></ul> <ul><li>Understand the Marketplace and Customer Needs </li></ul> <ul><li>Designing a Customer-Driven Marketing Strategy </li></ul> <ul><li>Preparing an Integrated Marketing Plan and Program </li></ul> <ul><li>Building Customer Relationships </li></ul> <ul><li>Capturing Value from Customers </li></ul> <ul><li>The Changing Marketing Landscape </li></ul> <ul><li>Topic Outline </li></ul> <p>3. What Is Marketing? </p> <ul><li>Marketingis a process by which companies create value for customers and build strong customer relationships to capture value</li></ul> <ul><li>from customers in </li></ul> <ul><li>return</li></ul> <p>4. </p> <ul><li>The ________ is the nations twenty-fourth largest advertiser with an annual budget of more than $1 billion. </li></ul> <ul><li><ul><li>Procter &amp; Gamble Company </li></ul></li></ul> <ul><li><ul><li>Boeing Company </li></ul></li></ul> <ul><li><ul><li>Levi Strauss &amp; Co. </li></ul></li></ul> <ul><li><ul><li>U.S. Government </li></ul></li></ul> <p>5. </p> <ul><li>The ________ is the nations 24 thlargest advertiser with an annual budget of more than $1 billion. </li></ul> <ul><li><ul><li>Procter &amp; Gamble Company </li></ul></li></ul> <ul><li><ul><li>Boeing Company </li></ul></li></ul> <ul><li><ul><li>Levi Strauss &amp; Co. </li></ul></li></ul> <ul><li><ul><li>U.S. Government </li></ul></li></ul> <p>6. What Is Marketing? </p> <ul><li>The Marketing Process </li></ul> <p>7. Understanding the Marketplaceand Customer Needs </p> <ul><li>Customer needs, wants, and demands </li></ul> <ul><li>Market offerings </li></ul> <ul><li>Value and satisfaction </li></ul> <ul><li>Exchanges and relationships </li></ul> <ul><li>Markets </li></ul> <ul><li>Core Concepts </li></ul> <p>8. </p> <ul><li>Marketing is ___________. </li></ul> <ul><li><ul><li>the same as advertising and sales </li></ul></li></ul> <ul><li><ul><li>not used by small corporations </li></ul></li></ul> <ul><li><ul><li>about satisfying customer needs </li></ul></li></ul> <ul><li><ul><li>making a profit </li></ul></li></ul> <p>9. </p> <ul><li>Marketing is ________. </li></ul> <ul><li><ul><li>the same as advertising and sales </li></ul></li></ul> <ul><li><ul><li>not used by small corporations </li></ul></li></ul> <ul><li><ul><li>about satisfying customer needs </li></ul></li></ul> <ul><li><ul><li>making a profit </li></ul></li></ul> <p>10. </p> <ul><li>Marketing is ________. </li></ul> <ul><li>1. part of manufacturing </li></ul> <ul><li>2. part of the finance department </li></ul> <ul><li>3. managing customer relationships </li></ul> <ul><li>4. sales promotion </li></ul> <p>11. </p> <ul><li>Marketing is ________. </li></ul> <ul><li>1. part of manufacturing </li></ul> <ul><li>2. part of the finance department </li></ul> <ul><li>3.managing customer relationships </li></ul> <ul><li>4. sales promotion </li></ul> <p>12. Understanding the Marketplace and Customer Needs </p> <ul><li>Customer Needs, Wants, and Demands </li></ul> <p>13. </p> <ul><li>The most basic concept underlying marketing is that of ________. </li></ul> <ul><li><ul><li>profits </li></ul></li></ul> <ul><li><ul><li>products </li></ul></li></ul> <ul><li><ul><li>human needs </li></ul></li></ul> <ul><li><ul><li>services </li></ul></li></ul> <p>14. </p> <ul><li>The most basic concept underlying marketing is that of ________. </li></ul> <ul><li><ul><li>profits </li></ul></li></ul> <ul><li><ul><li>products </li></ul></li></ul> <ul><li><ul><li>human needs </li></ul></li></ul> <ul><li><ul><li>services </li></ul></li></ul> <p>15. Understanding the Marketplace and Customer Needs </p> <ul><li>Market offeringsare some combination of products, services, information, or experiences offered to a market to satisfy a need or want </li></ul> <ul><li>Marketing myopiais focusing only on existing wants and losing sight of underlying consumer needs </li></ul> <p>16. Understanding the Marketplace and Customer Needs </p> <ul><li>Customer Value and Satisfaction </li></ul> <ul><li>Expectations </li></ul> <p>17. </p> <ul><li>Exchangeis the act of obtaining a desired object from someone by offering something in return </li></ul> <p>Understanding the Marketplace and Customer Needs 18. Understanding the Marketplace and Customer Needs </p> <ul><li>Marketsare the set of actual and potential buyers of a product</li></ul> <p>19. Designing a Customer-Driven Marketing Strategy </p> <ul><li>Marketing managementis the art and science of choosing target markets and building profitable relationships with them </li></ul> <ul><li><ul><li>What customers will we serve? </li></ul></li></ul> <ul><li><ul><li>How can we best serve these customers? </li></ul></li></ul> <p>20. </p> <ul><li>The art and science of selecting target markets and developing profitable relationships with those markets is called marketing ________. </li></ul> <ul><li><ul><li>profiles </li></ul></li></ul> <ul><li><ul><li>maneuvers </li></ul></li></ul> <ul><li><ul><li>selection </li></ul></li></ul> <ul><li><ul><li>management </li></ul></li></ul> <p>21. </p> <ul><li>The art and science of selecting target markets and developing profitable relationships with those markets is called marketing ________. </li></ul> <ul><li><ul><li>profiles </li></ul></li></ul> <ul><li><ul><li>maneuvers </li></ul></li></ul> <ul><li><ul><li>selection </li></ul></li></ul> <ul><li><ul><li>management </li></ul></li></ul> <p>22. Designing a Customer-Driven Marketing Strategy </p> <ul><li>Market segmentationrefers to dividing the markets into segments of customers </li></ul> <ul><li>Target marketingrefers to which segments to go after </li></ul> <ul><li>Selecting Customers to Serve </li></ul> <p>23. Designing a Customer-Driven Marketing Strategy </p> <ul><li>Demarketingis marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it </li></ul> <ul><li>Selecting Customers to Serve </li></ul> <p>24. Designing a Customer-Driven Marketing Strategy </p> <ul><li>Choosing a Value Proposition </li></ul> <p>Thevalue propositionis the set of benefits or values a company promises to deliver to customers to satisfy their needs 25. </p> <ul><li><ul><li>The set of benefits/values a company promises to its customers is called __________. </li></ul></li></ul> <ul><li><ul><li><ul><li>value proposition </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>advertising </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>supply and demand </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>production concept </li></ul></li></ul></li></ul> <p>26. </p> <ul><li><ul><li>The set of benefits/values a company promises to its customers is called __________. </li></ul></li></ul> <ul><li><ul><li><ul><li>value proposition </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>advertising </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>supply and demand </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>production concept </li></ul></li></ul></li></ul> <p>27. Designing a Customer-Driven Marketing Strategy </p> <ul><li>Marketing Management Orientations </li></ul> <p>28. Designing a Customer-Driven Marketing Strategy </p> <ul><li>Production conceptis the idea that consumers will favor products that are available or highly affordable </li></ul> <ul><li>Marketing Management Orientations </li></ul> <p>29. Designing a Customer-Driven Marketing Strategy </p> <ul><li>Product conceptis the idea that consumers will favor products that offer the most quality, performance, and features.Organization should therefore devote its energy to making continuous product improvements. </li></ul> <ul><li>Marketing Management Orientations </li></ul> <p>30. Designing a Customer-Driven Marketing Strategy </p> <ul><li>Selling conceptis the idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort </li></ul> <ul><li>Marketing Management Orientations </li></ul> <p>31. Designing a Customer-Driven Marketing Strategy </p> <ul><li>Marketing Management Orientations </li></ul> <p>Marketing conceptis the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do 32. Designing a Customer-Driven Marketing Strategy </p> <ul><li>Marketing Management Orientations </li></ul> <p>Societal marketingconcept is the idea that a company should make good marketing decisions by considering consumers wants, the companys requirements, consumers long-term interests, and societys long-run interests 33. </p> <ul><li>Human welfare, want satisfaction, and profits are the three considerations underlining the concept known as ________. </li></ul> <ul><li><ul><li>societal marketing </li></ul></li></ul> <ul><li><ul><li>customer-driven </li></ul></li></ul> <ul><li><ul><li>sales-driven </li></ul></li></ul> <ul><li><ul><li>production </li></ul></li></ul> <p>34. </p> <ul><li>Human welfare, want satisfaction, and profits are the three considerations underlining the concept known as ________. </li></ul> <ul><li><ul><li>societal marketing </li></ul></li></ul> <ul><li><ul><li>customer-driven </li></ul></li></ul> <ul><li><ul><li>sales-driven </li></ul></li></ul> <ul><li><ul><li>production </li></ul></li></ul> <p>35. </p> <ul><li>Which marketing philosophy purports that achieving corporate goals depends on knowing the needs/wants of your markets and delivering the desired satisfactions better than your competitors? </li></ul> <ul><li><ul><li>Production concept </li></ul></li></ul> <ul><li><ul><li>Product concept </li></ul></li></ul> <ul><li><ul><li>Selling concept</li></ul></li></ul> <ul><li><ul><li>Marketing concept </li></ul></li></ul> <p>36. </p> <ul><li>Which marketing philosophy purports that achieving corporate goals depends on knowing the needs/wants of your markets and delivering the desired satisfactions better than your competitors? </li></ul> <ul><li><ul><li>Production concept </li></ul></li></ul> <ul><li><ul><li>Product concept </li></ul></li></ul> <ul><li><ul><li>Selling concept</li></ul></li></ul> <ul><li><ul><li>Marketing concept </li></ul></li></ul> <p>37. Designing a Customer-Driven Marketing Strategy 38. </p> <ul><li>The marketing mixis the set of tools (four Ps) the firm uses to implement its marketing strategy.It includes product, price, promotion, and place. </li></ul> <ul><li>Integrated marketing programis a comprehensive plan that communicates and delivers the intended value to chosen customers. </li></ul> <p>Preparing an Integrated Marketing Plan and Program 39. Building Customer Relationships </p> <ul><li>The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction </li></ul> <ul><li>Customer Relationship Management (CRM) </li></ul> <p>40. Building Customer Relationships </p> <ul><li>Relationship Building Blocks: Customer Value and Satisfaction </li></ul> <p>41. </p> <ul><li>To buildlasting customer relationships,organizations should focus on delivering ________ and ________. </li></ul> <ul><li><ul><li>high quality products; low prices </li></ul></li></ul> <ul><li><ul><li>customer value; customer satisfaction </li></ul></li></ul> <ul><li><ul><li>customer satisfaction; customer growth </li></ul></li></ul> <ul><li><ul><li>customer value; high profits </li></ul></li></ul> <p>42. </p> <ul><li>To buildlasting customer relationships,organizations should focus on delivering ________ and ________. </li></ul> <ul><li><ul><li>high quality products; low prices </li></ul></li></ul> <ul><li><ul><li>customer value; customer satisfaction </li></ul></li></ul> <ul><li><ul><li>customer satisfaction; customer growth </li></ul></li></ul> <ul><li><ul><li>customer value; high profits </li></ul></li></ul> <p>43. Building Customer Relationships </p> <ul><li>Customer Relationship Levels and Tools </li></ul> <p>44. Building Customer Relationships </p> <ul><li>Relating with more carefully selected customers uses selective relationship management to target fewer, more profitable customers </li></ul> <ul><li>Relating more deeply and interactively by incorporating more interactive two way relationships through blogs, Websites, online communities and social networks </li></ul> <ul><li>The Changing Nature of Customer Relationships </li></ul> <p>45. </p> <ul><li>Partner relationship managementinvolves working closely with partners in other company departments and outside the company to jointly bring greater value to customers </li></ul> <p>Building Customer Relationships 46. Building Customer Relationships </p> <ul><li>Partners inside the company is every function area interacting with customers </li></ul> <ul><li><ul><li>Electronically </li></ul></li></ul> <ul><li><ul><li>Cross-functional teams </li></ul></li></ul> <ul><li>Partners outside the company is how marketers connect with their suppliers, channel partners, and competitors by developing partnerships </li></ul> <ul><li>Partner Relationship Management </li></ul> <p>47. Building Customer Relationships </p> <ul><li>Supply chain is a channel that stretches from raw materials to components to final products to final buyers </li></ul> <ul><li>Supply management </li></ul> <ul><li>Strategic partners </li></ul> <ul><li>Strategic alliances </li></ul> <ul><li>Partner Relationship Management </li></ul> <p>48. Capturing Value from Customers </p> <ul><li>Customer lifetime value is the value of the entire stream of purchases that the customer would make over alifetime ofpatronage </li></ul> <ul><li>Creating Customer Loyalty and Retention </li></ul> <p>49. Capturing Value from Customers </p> <ul><li>Share of customeris the portion of the customers purchasing that a company gets in its product categories </li></ul> <ul><li>Growing Share of Customer </li></ul> <p>50. Capturing Value from Customers </p> <ul><li>Customer equityis the total combined customer lifetime values of all of the companys customers </li></ul> <p>51. Capturing Value from Customers </p> <ul><li>Building the right relationships with the right customers involves treating customers as assets that need to be managed and maximized </li></ul> <ul><li>Different types of customers require different relationship management strategies </li></ul> <ul><li><ul><li>Build the right relationship with the right customers </li></ul></li></ul> <ul><li>Building Customer Equity </li></ul> <p>52. The New Marketing Landscape </p> <ul><li>Major Developments </li></ul> <p>53. So, What Is Marketing?Pulling It All Together 54. </p> <ul><li>Which of the first four steps of the marketing process asks, What consumers will we serve? and How can we best serve targeted customers? </li></ul> <ul><li><ul><li>Step 1: Understanding the marketplace </li></ul></li></ul> <ul><li><ul><li>Step 2: Designing the marketing strategy </li></ul></li></ul> <ul><li><ul><li>Step 3: Constructing the marketing</li></ul></li></ul> <ul><li><ul><li>program </li></ul></li></ul> <ul><li><ul><li>4. Step 4: Building profitable relationships</li></ul></li></ul> <ul><li><ul><li>with customers </li></ul></li></ul> <p>55. </p> <ul><li>Which of the first four steps of the marketing process asks, What consumers will we serve? and How can we best serve targeted customers? </li></ul> <ul><li><ul><li>Step 1: Understanding the marketplace </li></ul></li></ul> <ul><li><ul><li>Step 2:Designing the marketing strategy </li></ul></li></ul> <ul><li><ul><li>Step 3: Constructing the marketing</li></ul></li></ul> <ul><li><ul><li>program </li></ul></li></ul> <ul><li><ul><li>4. Step 4: Building profitable relationships </li></ul></li></ul> <ul><li><ul><li>with customers </li></ul></li></ul> <p>56. </p> <ul><li>Which step of the marketing process is the most important? </li></ul> <ul><li><ul><li>Step 1: Understanding the marketplace </li></ul></li></ul> <ul><li><ul><li>Step 2: Designing the marketing strategy </li></ul></li></ul> <ul><li><ul><li>Step 3: Constructing the marketingprogram </li></ul></li></ul> <ul><li><ul><li>Step 4: Building profitable relationshipswith customers </li></ul></li></ul> <p>57. </p> <ul><li>Which step of the marketing process is the most important? </li></ul> <ul><li><ul><li>Step 1: Understanding the marketplace </li></ul></li></ul> <ul><li><ul><li>Step 2: Designing the marketing strategy </li></ul></li></ul> <ul><li><ul><li>Step 3: Constructing the marketing program </li></ul></li></ul> <ul><li><ul><li>Step 4:Building profitable relationshipswith customers </li></ul></li></ul> <p>58. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall </p>